The commissioner shall, upon application, examine the proceedings of domestic companies to increase or reduce their capital stock and, when found conformable to law shall indorse certificates thereof and shall issue certificates of authority to such company to transact business upon such increased or reduced capital. He shall not allow stockholders' obligations of any description as part of the assets or capital of any insurance company unless the same are secured by competent collateral.Codes, 1880, § 1087; 1892, § 2338; 1906, § 2568; Hemingway's 1917, § 5033; 1930, § 5140; 1942, § 5650.
Mississippi Legal Code